Debt sold by Credit Suisse and BofA loses blue label with funds

ENVIRONMENTAL, social and governance (ESG) bonds tied to debt swaps arranged by Credit Suisse and Bank of America Corp (BofA) are being reclassified by the fund managers buying them, in a move they say is needed to protect their investment clients from mislabelling.

The ESG debt in question – known as blue bonds – was offered by the two banks in connection with debt-for-nature swaps. The bonds’ proceeds were used to help governments refinance existing obligations, in exchange for marine conservation commitments.